TIER – A Leader in the European Micromobility Sector

Berlin-based TIER Mobility was launched in 2018 and is currently a leader in the European Micromobility sector. Their turquoise bikes and scooters are a familiar sight across Europe, providing a refreshingly rapid trip from meeting to meeting in 13 countries (including Switzerland, UK, Germany) and more than 150 cities. They also have the largest fleet of vehicles in Europe and the Middle East. TIER Mobility was recently selected to supply London’s e-scooter rental service – a prestigious win for the brand.

TIER Mobility was founded by serial high-growth entrepreneurs Lawrence Leuschner and Matthias Laug, who are committed to fighting climate change by building businesses with sustainability at heart. Their management team consists of heavyweights with substantial experience in upscaling businesses, including key executives from Tesla, N26, Uber, Lyft and rebuy, to name a few.

The quest to reform car-reliant cities

Having seen the adverse effects of climate change themselves, Leuschner and Laug believed it was time to reform the car-reliant city. They believe in Mobility-as-a-Service (MaaS) – a seamless package of different modes of transport that users can select from, depending on their immediate travel needs. TIER Mobility’s growing fleet of safe, green modes of transport enables users to experience their city in a fast, fun and new way while also improving congestion and emissions.

As part of its commitment to sustainability, TIER Mobility has adopted the United Nations’ Sustainable Development Goals (SDGs) as a regulatory framework and has set a well-defined schedule for reducing and offsetting emissions. In addition, in January 2020, TIER committed to being fully climate neutral – the first micromobility company to do so.[1] TIER (along with Voi, Wind, Lime) is also part of the Micromobility Trade Association, which helps shape legislation, regulation, and policy around these vehicles in Europe.

The CEO and Co-Founder has pledged away all of his shares in TIER Mobility to generate impact

In 2020, Lawrence Leuschner, the CEO and Co-founder of TIER Mobility, announced that, via Founders Pledge, he had given away all of his shares in the company to Blue Impact Ventures, an impact investment vehicle which he had founded. Blue Impact’s mission is to “..invest and support teams, that have the vision to tackle real challenges with impact for the environment as well as in public health, democracy, nutrition, and transportation”. [2]

The best-funded micromobility company in Europe

In June 2021, TIER received USD 60 million of asset-backed funding from Goldman Sachs, just seven months after raising USD 250 million in a Series C round, led by SoftBank Vision Fund 2. This was the largest-ever funding round for an e-scooter operator in Europe.[3]

And in October of 2021, TIER announced the first close of its USD 200 million Series D funding round, consolidating its position as the best-funded micromobility company in Europe. According to their press statement, the round was part of a broader equity and debt raise, led by previous investors SoftBank Vision Fund 2, Mubadala Capital and added new partners like M&G Investments, a green impact fund, and Mountain Partners, a diversified global investment holding. The statement continues on to say that funding provides TIER with additional resources to fulfil its mission to Change Mobility For Good by providing the safest, most equitable and sustainable mobility solution in the market.

TIER recently secured the largest funding round for a business of this type. This is set to fuel their expansion further, extending international coverage and adding bicycles and mopeds to their multimodal fleet. It will also enable TIER to grow its innovative TIER Energy Network. This initiative places battery charging stations in retail outlets and incentivizes users to swap the scooter’s battery post-ride. The user receives extra credit, and the retailer also benefits from the additional footfall in the store.

After Goldman Sachs’ recent funding, Ben Payne, Managing Director at Goldman Sachs, commented: “Even amid a global pandemic, Tier has established a proven track record of profitable unit economics and asset longevity. We are excited to help the European leader extend sustainable mobility to more people across the world.” Alex Gayer, Chief Financial Officer at TIER, added: “The size of this highly scalable asset-backed debt facility is a game-changing first in micromobility, accelerating our expansion and cementing our market leadership in Europe. This facility leverages our recent equity raise and will enhance our capital-efficient growth.” [4]

Contact Stableton or sign up to explore our investment opportunities

In the past, accessing a high-potential segment like micromobility meant seeking early access through venture capital funds (which, once well-established, might not even be interested in your commitment). In addition, it involved high investment minimums, cumbersome paperwork, scarce information (often not even knowing what you will be investing in), and long holding periods.

Today, there is an alternative. Accessing promising businesses via late-stage investment and pre-IPO investments is increasingly popular. For one, investors know the name of the company they are investing in. Secondly, as in the case of micromobility innovators like TIER Mobility, the product-market fit has already been established, and the path to profitability is clear.

To hop on an investment at this stage means a lot of upside potential, while the risk level stays relatively moderate.

Stableton is Switzerland’s leading provider for access to late-stage venture capital & pre-IPO Investments to smaller qualified investors. Our mission is to help investors get access to the otherwise secluded private investment market. With a minimum of CHF 10’000, this type of investing should be considered as part of a portfolio.

This article only scratches the surface of the opportunities late-stage VC and pre-IPO investments investing present. Contact your Stableton representative to learn more and find out about opportunities that exist right now.